Galaxy Digital launches institutional prediction markets trading

Galaxy Digital Inc. (NASDAQ: GLXY) announced the launch of institutional over-the-counter prediction markets trading through its Global Markets trading desk. The service enables hedge funds, family offices, and institutional clients to access prediction market liquidity at institutional sizes.

The offering covers instruments referencing non-sports event contracts traded on Kalshi and Polymarket, spanning economic, political, geopolitical, and other event-driven markets. Galaxy plans to expand to additional platforms and can pair prediction market positions with hedges in equities, commodities, and other assets.

Galaxy executed a $10 million trade with Arca, a crypto-native hedge fund, on outcomes associated with the passage of the CLARITY ACT. The OTC desk facilitated Arca's trade, enabling them to take a position tied directly to the outcome through bilateral execution.

"Event-driven markets are becoming core to how sophisticated investors express macro views, and they deserve institutional infrastructure to match," said Jason Urban, Global Co-Head of Digital Assets at Galaxy. "We're giving clients a principal counterparty that can warehouse risk, build hedged strategies across asset classes, and execute at sizes and scale that actually matter to their overall portfolios."

Jeff Dorman, Chief Investment Officer at Arca, said the fund is investing in themes related to Washington negotiations over CLARITY. "Hedging via prediction markets on CLARITY is one of the most appropriate vehicles currently, but prediction markets are currently not a sophisticated institutional market with enough liquidity for a fund of our size," Dorman said.

Galaxy operates as a principal counterparty in these transactions and conducts this activity solely with institutional counterparties, evaluating offerings on a jurisdiction-by-jurisdiction basis according to applicable legal and regulatory considerations.

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